Correlation Between CCL Industries and Pactiv Evergreen
Can any of the company-specific risk be diversified away by investing in both CCL Industries and Pactiv Evergreen at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CCL Industries and Pactiv Evergreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCL Industries and Pactiv Evergreen, you can compare the effects of market volatilities on CCL Industries and Pactiv Evergreen and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CCL Industries with a short position of Pactiv Evergreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCL Industries and Pactiv Evergreen.
Diversification Opportunities for CCL Industries and Pactiv Evergreen
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CCL and Pactiv is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding CCL Industries and Pactiv Evergreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pactiv Evergreen and CCL Industries is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CCL Industries are associated (or correlated) with Pactiv Evergreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pactiv Evergreen has no effect on the direction of CCL Industries i.e., CCL Industries and Pactiv Evergreen go up and down completely randomly.
Pair Corralation between CCL Industries and Pactiv Evergreen
Assuming the 90 days horizon CCL Industries is expected to under-perform the Pactiv Evergreen. In addition to that, CCL Industries is 3.84 times more volatile than Pactiv Evergreen. It trades about -0.19 of its total potential returns per unit of risk. Pactiv Evergreen is currently generating about 0.29 per unit of volatility. If you would invest 1,727 in Pactiv Evergreen on October 20, 2024 and sell it today you would earn a total of 29.00 from holding Pactiv Evergreen or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCL Industries vs. Pactiv Evergreen
Performance |
| Timeline |
| CCL Industries |
| Pactiv Evergreen |
CCL Industries and Pactiv Evergreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCL Industries and Pactiv Evergreen
The main advantage of trading using opposite CCL Industries and Pactiv Evergreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCL Industries position performs unexpectedly, Pactiv Evergreen can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pactiv Evergreen will offset losses from the drop in Pactiv Evergreen's long position.| CCL Industries vs. Myers Industries | CCL Industries vs. Silgan Holdings | CCL Industries vs. Pactiv Evergreen | CCL Industries vs. Reynolds Consumer Products |
| Pactiv Evergreen vs. Stepstone Group | Pactiv Evergreen vs. Reynolds Consumer Products | Pactiv Evergreen vs. Broadstone Net Lease | Pactiv Evergreen vs. Pmv Pharmaceuticals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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